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PepsiCo Pilots Micro-Fulfillment Centre

By Minjun Park
1 min read
Pepsico logo
Pepsico logo
In this article (5)

PepsiCo today announced the launch of a micro-fulfillment center in Joliet, Illinois. A technology and approach quickly gaining ground with retailers, PepsiCo will use this strategic capability to meet eCommerce demand of our key customers and to gain important learnings through working with retail partners to build fully integrated and highly efficient solutions. This fully automated fulfillment approach improves COVID safety, reduces the costs of floorspace and expedites the picking process which allows for faster delivery and a reduction on overall delivery costs.

“PepsiCo is one of the first CPG brands to launch an eCommerce micro-fulfillment center, and the creation of this center solidifies our commitment to making the necessary investments to continue to stay ahead of the growing online consumer demand. Through collaboration with our retail partners, we are creating an end to end solution that empowers us collectively to enhance our operations with applied insights. The goal is getting PepsiCo products in consumers’ hands and delivering more smiles as quickly as possible.”

– Vince Jones, Head of eCommerce, PepsiCo

PepsiCo’s solution is powered by leading automation supplier Dematic due to their broad experience and ability to meet PepsiCo’s world-class standards. Initial tests show the high level of automation provided on-location allows PepsiCo to service 7.5x more units an hour than a traditional ecommerce warehouse operation.

“We feel very good about where we are and continue to remain focused on our capabilities and the consumer,” said Jones. “When you look at what we’ve accomplished in the five years since PepsiCo started its eCommerce presence, retailers understand the value we bring in augmenting their operations to deliver great consumer experiences.”

Questions & Answers

Q.

What is the primary purpose of PepsiCo's new micro-fulfillment centre?

A.

The centre is designed to meet the eCommerce demand of PepsiCo's key customers and to gather important insights by collaborating with retail partners to develop integrated and efficient solutions for online sales.

Q.

What are the main benefits of this automated fulfillment approach for PepsiCo?

A.

This method improves COVID safety, lowers costs associated with floorspace, and speeds up the picking process. These efficiencies lead to quicker delivery times and a reduction in overall delivery expenses for the company.

Q.

Which company is supplying the automation technology for this project?

A.

The micro-fulfillment solution is powered by Dematic, an automation supplier. PepsiCo chose Dematic due to their extensive experience and their capacity to meet the required high standards for the project.

Q.

How much more efficient is the new micro-fulfillment centre compared to a traditional warehouse?

A.

Initial tests indicate that the high level of automation at the new centre allows PepsiCo to service 7.5 times more units per hour than a conventional eCommerce warehouse operation.

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